When it comes to mutual fund investing, not all high returns come with high risk. Some funds consistently deliver superior long-term growth backed by strong fundamentals, skilled fund management, and favorable market trends. As per ValueResearch data as of 21-Oct-2025, these 12 mutual funds have achieved over 30% CAGR in the last 5 years, earning them a High Return Grade. These funds span across categories like infrastructure, small cap, mid cap, and focused equity—each contributing uniquely to wealth creation.
Last week we covered about 7 Low Risk-High Return Mutual Funds as per ValueResearch to Invest in 2025.
What is a High Return Grade as per ValueResearch?
A High Return Grade from ValueResearch indicates that a fund has:
- Delivered above-average long-term returns compared to category peers.
- Maintained consistent risk-adjusted performance using metrics like Sharpe and Sortino ratios.
- Outperformed benchmarks over multiple timeframes (3-year, 5-year, and 10-year).
Such funds typically reward investors who stay invested through market cycles and trust the process of compounding.
List of 12 High Return Mutual Funds with Over 30% CAGR in the Last 5 Years
| Rank | Mutual Fund Scheme | 5 Years CAGR |
|---|---|---|
| 1 | ICICI Prudential Infrastructure Fund | 38.6 |
| 2 | HDFC Infrastructure Fund | 35.8 |
| 3 | ICICI Prudential BHARAT 22 FOF | 35.7 |
| 4 | Quant Small Cap Fund | 35.6 |
| 5 | Motilal Oswal Midcap Fund | 35.2 |
| 6 | Bandhan Infrastructure Fund | 34.6 |
| 7 | Bandhan Small Cap Fund | 32.7 |
| 8 | Edelweiss Mid Cap Fund | 31.2 |
| 9 | HDFC Focused Fund | 30.8 |
| 10 | SBI Contra Fund | 30.5 |
| 11 | Motilal Oswal Large and Midcap Fund | 30.4 |
| 12 | Invesco India Mid Cap Fund | 30.2 |
Deep Dive into 12 High Return Mutual Funds with Over 30% CAGR in the Last 5 Years
Let’s deep dive into each of these high-performing mutual funds.
#1 – ICICI Prudential Infrastructure Fund
Investment Objective: To generate long-term capital appreciation by investing in infrastructure and allied sectors.
Performance Metrics:
- 3-Year Return: 29.75%
- 5-Year Return: 38.55%
- 10-Year Return: 17.81%
Highlights:
- One of the top performers with consistent outperformance in infrastructure-focused portfolios.
- Captures India’s strong infrastructure development momentum.
Why to Invest: Ideal for investors looking for long-term thematic exposure to India’s growth sectors.
Risk Factors: Sectoral concentration may cause short-term volatility.
This fund is part of List of Mutual Funds Recommended by Perplexity AI to invest in 2025.
#2 – HDFC Infrastructure Fund
Investment Objective: Seeks capital growth by investing in infrastructure-related companies.
Performance Metrics:
- 3-Year Return: 30.18%
- 5-Year Return: 35.78%
- 10-Year Return: 12.47%
Highlights:
- Strong comeback post-2020, driven by cyclical and capital goods sector revival.
- Consistent high return grade for the last 2 years.
Why to Invest: Suitable for long-term investors with high-risk appetite and belief in India’s infrastructure expansion.
Risk Factors: Performance may dip during periods of infrastructure slowdown.
#3 – ICICI Prudential BHARAT 22 FOF
Investment Objective: To provide returns corresponding to the performance of the S&P BSE Bharat 22 Index.
Performance Metrics:
- 3-Year Return: 27.93%
- 5-Year Return: 35.70%
Highlights:
- Focused on PSU and government-linked companies from sectors like finance, energy, and infrastructure.
- Benefited from PSU stock rerating.
Why to Invest: Offers a diversified exposure to India’s key public sector enterprises.
Risk Factors: Heavy PSU exposure makes it sensitive to policy changes.
This fund is among the 13 Best Mutual Funds Rated 5-Star by Value Research (30%+ CAGR in 5 Years).
#4 – Quant Small Cap Fund
Investment Objective: To generate high long-term returns by investing in small-cap companies.
Performance Metrics:
- 3-Year Return: 25.68%
- 5-Year Return: 35.61%
- 10-Year Return: 20.48%
Highlights:
- Dynamic and data-driven fund management approach.
- Strong alpha generation in volatile small-cap segment.
Why to Invest: Suitable for aggressive investors seeking high compounding potential.
Risk Factors: Short-term volatility and liquidity risks in small-cap space.
#5 – Motilal Oswal Midcap Fund
Investment Objective: Focuses on midcap companies with strong earnings growth potential.
Performance Metrics:
- 3-Year Return: 27.59%
- 5-Year Return: 35.16%
- 10-Year Return: 18.96%
Highlights:
- Strong emphasis on quality growth stocks.
- Consistent top-quartile performance in midcap category.
Why to Invest: Good mix of growth and quality midcaps.
Risk Factors: Midcap valuations can be volatile during market corrections.
This is one of the 5 Best Midcap Mutual Funds to Invest in 2025 (Based on Rolling Returns).
#6 – Bandhan Infrastructure Fund
Investment Objective: To generate long-term returns by investing primarily in infrastructure sectors.
Performance Metrics:
- 3-Year Return: 28.75%
- 5-Year Return: 34.62%
- 10-Year Return: 17.04%
Highlights:
- Solid returns amid rising capital expenditure and government policy support.
Why to Invest: Ideal for those betting on India’s long-term infrastructure story.
Risk Factors: Returns can fluctuate based on project execution cycles.
#7 – Bandhan Small Cap Fund
Investment Objective: To achieve high capital appreciation through investments in small-cap stocks.
Performance Metrics:
- 3-Year Return: 32.03%
- 5-Year Return: 32.72%
Highlights:
- One of the best-performing small-cap funds over the last 3 years.
- Managed with a bottom-up stock selection strategy.
Why to Invest: Suitable for investors with a long horizon (7–10 years).
Risk Factors: May underperform during large-cap-led rallies.
#8 – Edelweiss Mid Cap Fund
Investment Objective: To generate capital appreciation by investing in quality midcap companies.
Performance Metrics:
- 3-Year Return: 26.74%
- 5-Year Return: 31.19%
- 10-Year Return: 19.39%
Highlights:
- Diversified midcap exposure with good risk control measures.
Why to Invest: Stable performer suitable for long-term wealth creation.
Risk Factors: May see moderate volatility due to market cycles.
This fund is among 10 Mutual Funds That Turned ₹ 1 Lakh Into Over ₹ 10 Lakhs in 15 Years.
#9 – HDFC Focused Fund
Investment Objective: Invests in a concentrated portfolio of high-quality stocks.
Performance Metrics:
- 3-Year Return: 24.48%
- 5-Year Return: 30.77%
- 10-Year Return: 15.99%
Highlights:
- Consistent outperformance through quality stock selection.
Why to Invest: Great for investors preferring focused yet diversified portfolios.
Risk Factors: Concentrated portfolio increases stock-specific risk.
We reviewed this fund several times and also in 30 Mutual Funds that generated 3x returns in the last 5 years.
#10 – SBI Contra Fund
Investment Objective: To generate long-term capital appreciation through contrarian investing.
Performance Metrics:
- 3-Year Return: 21.80%
- 5-Year Return: 30.51%
- 10-Year Return: 16.91%
Highlights:
- Contrarian approach focusing on undervalued opportunities.
- Strong alpha over the last few years.
Why to Invest: Ideal for investors with patience and long-term perspective.
Risk Factors: May lag during momentum-driven markets.
#11 – Motilal Oswal Large and Midcap Fund
Investment Objective: To achieve long-term growth through a blend of large and midcap stocks.
Performance Metrics:
- 3-Year Return: 30.61%
- 5-Year Return: 30.40%
Highlights:
- Balanced allocation across large and mid-sized companies.
Why to Invest: Good option for investors seeking stability and growth.
Risk Factors: Moderate risk due to midcap exposure.
#12 – Invesco India Mid Cap Fund
Investment Objective: Seeks capital appreciation through investments in midcap companies.
Performance Metrics:
- 3-Year Return: 30.08%
- 5-Year Return: 30.22%
- 10-Year Return: 20.11%
Highlights:
- Consistent midcap performer with steady alpha generation.
Why to Invest: Great option for investors seeking long-term midcap exposure.
Risk Factors: Midcap market corrections can impact short-term performance.
Performance Summary Table
| Mutual Fund | 3-Year Return (%) | 5-Year Return (%) | 10-Year Return (%) |
|---|---|---|---|
| ICICI Prudential Infrastructure Fund | 29.75 | 38.55 | 17.81 |
| HDFC Infrastructure Fund | 30.18 | 35.78 | 12.47 |
| ICICI Prudential BHARAT 22 FOF | 27.93 | 35.70 | — |
| Quant Small Cap Fund | 25.68 | 35.61 | 20.48 |
| Motilal Oswal Midcap Fund | 27.59 | 35.16 | 18.96 |
| Bandhan Infrastructure Fund | 28.75 | 34.62 | 17.04 |
| Bandhan Small Cap Fund | 32.03 | 32.72 | — |
| Edelweiss Mid Cap Fund | 26.74 | 31.19 | 19.39 |
| HDFC Focused Fund | 24.48 | 30.77 | 15.99 |
| SBI Contra Fund | 21.80 | 30.51 | 16.91 |
| Motilal Oswal Large and Midcap Fund | 30.61 | 30.40 | — |
| Invesco India Mid Cap Fund | 30.08 | 30.22 | 20.11 |
Conclusion
These 12 mutual funds have proven their ability to deliver over 30% CAGR in the last 5 years, earning a High Return Grade from ValueResearch. While past performance is not a guarantee of future returns, these funds have demonstrated strong fund management, robust stock selection, and category-beating consistency.
Before investing:
- Match your fund selection with your risk appetite and investment horizon.
- Diversify across categories like large, mid, and small caps.
- Stay invested for at least 5–10 years to maximize compounding benefits.
If your goal is aggressive growth, these high return mutual funds deserve a place in your 2025 investment portfolio.
- 12 High Return Mutual Funds with Over 30% CAGR in the Last 5 Years - October 22, 2025
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